Home Loan Schemes and Home Loan Interest Rate for Women

Home Loan Interest Rate for Women are softened in India

A sharp rise has been noticed in the number of women property buyers in India of late. These days, women play a crucial role in taking a key decision like home buying. About 30% of the property buyers in urban India comprise of women buyers. Financial institutes and banks are often known to offer certain privileges to women home buyers when it comes to providing Home loans for women. That’s why it’s more important for the women borrowers to acquire more knowledge on home loans and the new housing market.

women buyers home loan interest rateand stamp duty prices discounted
Women Power – Dream Big and Invest in Real Estate
Here are some of the advantages female homebuyers have in India:
  • Women home buyers can avail home loans at cheaper rates from some of the leading Indian banks and financial organizations. Banks are keen to lend funds to women as they don’t miss out on the due dates and repay loans more punctually. However, the banks tend to run a check on the Adhaar Card, PAN Card, Driving License, and Voter ID prior to issuing home loans to women borrowers. Certain utility bills are also sought as residence proof e.g. telephone bills and electricity bills.
  • Housing-for-All Mission of the Indian Government has set the norm for women to be either sole owners or co-owners of new homes at cheaper rates. This is a direct effort of our central government towards empowering women belonging to underprivileged and low-income groups. It even has a direct impact on shaping the new housing market.
  • A lower stamp duty is accepted from women across a number of Indian states. The women borrowers are expected to pay 2% lesser on stamp duty in states like Haryana and Delhi. That’s one reason why some of the couples tend to get their properties registered jointly in the name of the female partner. A lower stamp duty is met even when the female partner receives the property in the form of a gift.
  • Women home buyers can even enjoy a tax deduction worth 2,00,000 INR on the amount of their home loan interest. While letting out your property, the rate of interest to be met by you and your husband are subject to tax deductions if you sign up as co-applicants to your home loans.
  • While letting out homes, women are even allowed to offset the net rental value by deducting the rate of interest to be met against their mortgage loans.

All key home buying tips for women suggest that the SBI is not just one bank that softened the rate of home loan interest for women.

‘Woman Power’ was another scheme launched  in 2015 by the HDFC bank for motivating the woman home buyers. This scheme enabled women buyers to achieve home loans with a lower interest rate 5 bps below the normal applicable home loan interest rate. The Mahila Awas Loan was yet another financial scheme that enabled women to achieve an amount of up to 12 Lakhs; this scheme was launched by the Aspire Home Finance, known as MALA (Mahila Awas Loan from Aspire) Scheme. The rate of interest for this loan is much higher and is directly proportional to the risk borne by the applicants as they often fail to produce proper identity proofs.

Women belonging to low-income groups are even endowed with other financial schemes like that of the MALA scheme. This scheme assists women belonging to the unorganized sector like those that are working as domestic help and daily-wage earners to be able to pull out of their financial crisis.

According to the Narendra Modi government’s Housing for All Mission, women should be either co-owners or sole owners of affordable houses. The government decided that this should be so to empower women from low-income households. In poverty alleviation schemes in Indian states like West Bengal, women’s names are included in the land titles of the plots that the government allocates to low-income households.

Women home buyers are also eligible for stamp duty concessions under certain state governments. The men in Delhi need to bear a stamp duty worth 5% of their property price while women have to bear only 3%.

In India, home ownership, which has been dominated by males for ages, is all set to undergo a radical change in favor of our women. Thanks to a large section of developers and financial institutions for all their efforts.

Author Bio:

Ron Johnson has worked as a financial strategist for a few eminent business houses based in India. Ron is still attached with many such organizations that boast a strong presence throughout the web. Currently, he’s involved in shaping the roadmap for a few resourceful global websites that expedite corporate financial solutions for fortune 500 clients.


Home Buying Tips for Women

Buying a home today takes a certain confidence – in the market and in your own financial strength. A lot of single, female homebuyers are taking that bold step in high heels, with no one at their side.

By educating and empowering themselves, single women have acquired a sense of  home-buying confidence, making the dream of home ownership a reality. It’s a process that doesn’t necessarily begin with love first—unless it’s for her dream house. She just needs a good real estate agent, an educated understanding of navigating the home-buying process, and a happy and pleasant mood to celebrate after signing on the 50,000 dotted lines at closing.

Not just the single woman, a married woman too, apart from being an earning member, also has a complete grasp of the family’s current and future financial abilities. Developers are aware that they play a role in a family’s homwomen tips _ loanyantrae purchase decisions. A woman has a better perspective about what should be included or excluded. Still, buying a home is not just a matter of instincts and good taste, but also one for adequate planning and foresight.

For women who are investigating the market for suitable properties, either for themselves or for their family, here are some points to consider.

  • Be realistic, stay focused

Home ownership is a great move for a woman and a step towards independence in her retirement years. But your first home is not necessarily the only home you will ever buy. Remember that you can always upgrade in the future if required, so there is absolutely no need to buy the biggest-possible flat now. So try not to compromise your current financial viability by buying a needlessly expensive home.

The home you live in today does not have to be the one you will be living in when you retire. When it comes to real estate, it is always a good thing to upgrade as financial ability improves, but this process can and should be planned out over the entire course of one’s working life. For a woman who is at the outset of her career, nothing is more important than financial stability on every front.

To plan for upgrading to a bigger and better home further down the line, it is advisable to invest (and stay invested) in good mutual funds which deliver more women home buying_loanyantrareturns than savings accounts. Direct stock market speculation into single company stocks and bonds as a potential source of real estate funding should be avoided; as such investments are not sufficiently diversified to offer a safety net in case a company experiences a downturn.

  • Shop aggressively for financing

The home loan market in India is currently very competitive, and banks are falling over themselves to attract customers. Make specific inquiries about special interest rates and other incentives that a bank is offering women borrowers (usually 0.05% lesser than the prevailing interest rate). Never take the first thing that is offered to you — most banks have a considerable margin of flexibility to accommodate borrowers who know what they want and are determined to get it.

Check rates with several mortgage lenders, and don’t simply select a lender based on a recommendation from a friend or a realtor.

  • Don’t stretch your budget too far

First figure out the monthly mortgage and whether they will be able to afford it. Online mortgage calculators can be helpful, but they tell you the value of the principal and associated interests. There are other monthly expenses involved in home ownership, and these include insurances, taxes, maintenance charges and utilities charges.

For working, single women, it is important that all these amounts put together do not exceed 35-40 per cent of their net income. Keep in mind that property is not the only investment you should make towards your ongoing financial security. You should also set aside at least 10 per cent of your monthly income into a retirement plan.

When it comes to home purchase, every financial angle must be examined well in advance. It is advisable to use the services of an experienced financial planner. The process of buying a dream home should not turn into an unexpected nightmare at any point.

Those who are just starting out in their careers should not allow themselves to fall too deep into a credit trap. It is always best to use free and clear capital as far as possible.

Make sure the developer has a strong reputation in the market by doing multiple checks. It is highly advisable to patronise only established developers with a readily verifiable track record for timely completions and 100 per cent adherence to the agreements they make with their customers.